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AGREEMENT FOR INSURANCE BROKER AND CONSULTING SERVICES
STATE OF TEXAS §
COUNTY OF TARRANT§
This Agreement ("Contract") is made and entered into by and between the CITY OF FORT WORTH,
Texas, a municipal corporation situated in Tarrant, Wise, and Denton Counties, Texas (hereinafter referred
to as "CITY") acting by and through Karen L. Montgomery, its duly authorized Assistant City Manager and
McGriff, Seibels and Williams of Texas (hereinafter referred to as "BROKER") acting by and through its
Senior Vice President, Johnny L. Fontenot, who is duly authorized to act. CITY and BROKER may be
referred to herein individually as a"party" and collectively as the "parties".
In consideration of the mutual covenants and provisions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree, and by the
execution hereof are bound, to the mutual obligations herein contained and to the performance of the tasks
hereinafter described.
1 SCOPE OF SERVICES
BROKER agrees to provide the following services:
1.1 INSURANCE PLACEMENT SERVICES
1.1.1 Development of Bid Requests. BROKER shall work closely with CITY to develop bid requests to
secure excess workers' compensation insurance for the CITY's insurable risks. The objective is to
place excess insurance programs over CITY's workers' compensation self-insurance program in
accordance with the desired retentions and limits to be designed by the CITY. BROKER shall
make available to CITY all resources at its disposal to properly collect, organize and review all data
placed into the bid request.
1.1.2 Marketinq Bid Requests. BROKER shall actively market CITY account to qualified excess workers'
compensation and liability insurance companies. Marketing shall include, but not be limited to,
assisting in the development of insurance specifications and underwriting criteria, assisting in
developing Requests for Quotes from insurance companies, canvassing insurance markets,
reviewing suitable manuscript policies, negotiations on behalf of CITY, consultation and
professional advice on proposed changes or enhancements to the program and ongoing advisory
services for the duration of the Contract concerning changes or enhancements to the program.
1.1.3 Bids for Excess Workers' Compensation Insurance. BROKER shall represent CITY in all phases of
obtaining excess workers' compensation insurance. Direct negotiations with the insurance
company will take place with the direction of CITY. Placement of any program of insurance will be
conducted as a bid directly to insurance market underwriters. BROKER shall review bids and
assist CITY in the selection thereof.
1.1.4 Administration: BROKER shall review and analyze policies for accuracy of coverage and advise
CITY regarding all aspects of policy interpretation; provide confirmation of evidence of insurance
(binders, cover notes) or the status of a placement prior to the renewal date; timely issue
certificates of insurance; arrange periodic meetings with CITY staff to discuss pertinent topics, and
attend meetings with CITY Staff or Council as requested; provide notice of claim on behalf of CITY
to the excess carrier in accordance with the notification provisions of t prp q s
City of Fort Worth—McGriff, Seibels&Williams of Texas
Contract For Insurance Broker and Consulting Services
status reports upon reasonable request; provide loss runs upon request; and serve in a consulting
capacity to CITY on any loss settlement negotiation with the excess insurer if needed.
1.1.5 Advisory Role. BROKER shall continue to act in an advisory and consulting role to CITY for the
duration of the BROKER's Contract to ensure that the insurance program accepted by CITY
continues to work efficiently, effectively and in the best interests of the CITY.
1.1.6 It is clearly understood that any resulting insurance product from the BROKER Services Contract
cannot be accepted nor bound until approved by CITY's CITY council. All procurement of
insurance shall be conducted in accordance with the Texas Local Government Code and
applicable law.
1.2 ACTUARIAL SERVICES
1.2.1 BROKER shall arrange for, coordinate and cause to be performed an annual actuarial study and
shall coordinate the collection of data for actuarial services on the CITY's Workers' Compensation
Claim Fund.
1.2.2 The actuarial study shall commence during the month of October and a final actuarial report shall
be provided to the CITY's Human Resources Manager, Occupational Health and Safety/Workers'
Compensation Division no later than December 31 of the same year.
1.2.3 BROKER shall review actuarial reports, advise CITY regarding interpretation of actuarial reports
and make recommendations for program modifications.
1.2.4. Costs of actuarial studies shall be paid by CITY.
1.3 WORKERS' COMPENSATION CLAIMS AUDIT SERVICES
1.3.1 BROKER shall arrange for, coordinate and cause to be performed annual Claims Audit Services of
the CITY's Workers' Compensation Third Party Claims Administrator, Workers' Compensation
Medical Cost Containment Contractor/Subcontractor, and/or Workers' Compensation Healthcare
Network Administrator.
1.3.2 The claims audit shall commence during the month of October and a final audit report shall be
provided to the CITY's Human Resources Manager, Occupational Health and Safety / Workers'
Compensation Division no later than December 31 of the same year.
1.3.3 Final audit reports shall be provided to the CITY's Human Resources Manager, Occupational
Health and Safety/Workers' Compensation Division no later than November 15 of the same year.
1.3.4 Costs of audits shall be paid by CITY.
1.4 OCCUPATIONAL HEALTH & SAFETY, ACCIDENT PREVENTION AND WORKERS'
COMPENSATION LOSS CONTROL SERVICES
1,4.1 BROKER shall serve in a consulting capacity to CITY on Occupational Health & Safety/Workers'
Compensation related issues and projects as CITY may request,
1.4.2 Such loss control consulting services shall include but not be limited to: reviewing new laws and
regulations; assisting in reviewing claims as needed; answering loss control questions; evaluating
high-risk activities; providing safety engineering services; conducting ergonomic studies, safety
program evaluations, and job safety/hazard analyses on specific worker activities; and conducting
accident investigations.
1.4.2 BROKER shall provide approximately 500 hours of these services.
1.5 OTHER BROKER SERVICES
1.5.1 BROKER shall assist CITY in evaluating proposals from potential Contractors for programs such
as the workers' compensation third party claims administrator, medical cost containment, workers'
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Contract For Insurance Broker and Consulting Services
compensation healthcare networks, and/or other Occupational Health & Safety / Workers'
Compensation programs of the CITY.
1.5.2 BROKER may propose additional services for consideration by CITY.
2 TERM AND RENEWAL
2.1.1 The term of the Contract shall be for a period of three (3) years beginning December 1, 2007 and
ending November 30, 2010 ("Initial Term"), unless renewal and extension or earlier termination
occurs pursuant to any other provision contained in this Contract.
2.1.2 This Contract may be renewed and extended beyond the date stated above, under the same terms
and conditions, subject to the mutual agreement of the parties for two (2) additional one (1) year
periods, each a "Renewal Term." Should the parties agree to renew this Contract, the parties shall
execute an agreement in writing establishing such mutual assent and the renewed and extended
term.
3 LICENSES AND CERTIFICATIONS
3.1.1 BROKER warrants and certifies that BROKER and any other person designated to provide
services hereunder has the requisite training, license and/or certification to provide said service.
4 PAYMENT FOR SERVICES
4.1 BROKER shall invoice the CITY for services rendered according to the schedule in Attachment A.
An invoice for insurance placement services, actuarial services, and claims auditing services shall
be provided to the CITY upon completion and delivery of the service.
4.2 The total of all payments and obligations made and incurred by CITY hereunder, in consideration
for services rendered by BROKER, shall not exceed the amount of FORTY THOUSAND and no
cents ($40,000.00) annually or during any Renewal Term.
4.3 Payments to BROKER shall be in the amount shown by the invoices and other documentation
submitted in accordance with subsection 4.2 and shall be subject to CITY's approval. All services
shall be performed to CITY's satisfaction, and CITY shall not be liable for any payment under this
Contract for services which are unsatisfactory or which CITY has not approved.
4.4 CITY shall not be obligated or liable under this Contract to any party other than BROKER for
payment of any monies or provision of any goods or services.
5AMENDMENT
5.1 This Contract, together with its authorizing ordinance and exhibits, if any, shall constitute the full
and final agreement between the parties hereto.
5.2 Except where the terms of this Contract provide otherwise, any amendment to this Contract shall
not be binding on the parties unless such amendment be in writing, executed by both CITY and
BROKER.
5.3 It is understood and agreed by the parties hereto that changes in local, state and federal rules,
regulations or laws applicable hereto may occur during the term of this Contract and that any such
changes, unless either party objects in writing, shall be automatically incorporated into this
Contract without written amendment hereto, and shall become a part hereof as of the effective date
of the rule, regulation or law,
6 CONFIDENTIALITY
6.1 No reports, information, project evaluation, project designs, data or any other documentation
developed by, given to, prepared by, or assembled by BROKER under this Contract shall be
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Contract For Insurance Broker and Consulting Services
disclosed or made available to any individual or organization by BROKER without the express prior
written approval of CITY. In the event BROKER receives any such request, BROKER shall
forward such request to CITY immediately.
6.2 BROKER shall establish a method to secure the confidentiality of records and information that
BROKER may have access to in accordance with the applicable federal, state, and local laws,
rules and regulations. If unauthorized disclosure of or access to confidential information has
occurred, or if BROKER reasonably believes unauthorized disclosure of or access to confidential
information has occurred, BROKER shall immediately notify the City in writing of such disclosure.
This provision shall not be construed as limiting CITY's right of access to records or other
information under this Contract.
7 OWNERSHIP OF DOCUMENTS
7.1 All reports, information and other data provided by, prepared or assembled by or on behalf of
BROKER under this Contract in whatsoever form and character produced shall become the sole
property of CITY without restriction on future use.
7.2 All such reports, information or data shall be delivered to CITY upon termination or expiration of
this Contract, at BROKER's sole cost and expense.
7.3 No such report, information nor data shall be the subject of any copyright or proprietary claim by
BROKER.
8 SUBCONTRACTING
8.1 Any work or services submitted by BROKER shall be by written Contract, and unless specific
waiver is granted in writing by CITY, shall be subject to its terms to each and every provision of this
Contract. Compliance by a subcontractor with the provisions of said Contract shall be the
responsibility of contractor. BROKER shall not sub-contract any services under this contract without the
expressed consent of CITY.
8.1 CITY shall in no event be obligated to any third party, including any subcontractor of contractor, for
performance of services or payment of fees.
8.2 BROKER will subcontract a portion of account services to its minority partner, The Jenkins
Agency, for ten percent(10%) of BROKER's annual fee.
8.3 In accordance with CITY of Fort Worth Ordinance No. 15530, as it may be amended from time to
time, the CITY has goals for the participation of minority business enterprises and woman business
enterprises (M/WBE) in CITY Contracts. BROKER acknowledges the M/WBE goal established for
this Contract and its commitment to meet that goal. Any misrepresentation of facts (other than a
negligent misrepresentation) and/or the commission of fraud by BROKER may result in the
termination of this agreement and debarment from participating in CITY Contracts for a period of
time of not less than three (3) years.
91NSURANCE
9.1 Prior to the commencement of any work by BROKER under this Contract, BROKER shall furnish
an original completed Certificate(s) of Insurance form to CITY's Risk Management Division and
Office of the CITY Secretary, which shall be completed by an agent authorized to bind the named
underwriter(s) and their company to the coverage, limits, and termination provisions shown
thereon, and which shall furnish and contain all required information referenced and indicated
thereon. The original certificate(s) or form must have the agent's original signature, including the
signer's company affiliation, title and phone number, and be mailed directly from the agent to CITY.
CITY shall have no duty to pay or perform under this Contract until such certificate or form is
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Contract For Insurance Broker and Consulting Services
delivered to the Risk Management Division and the Office of the CITY Secretary and no officer or
employee shall have authority to waive this requirement.
9.2 CITY reserves the right to review the insurance requirements of this section during the effective
period of the Contract and any extension or renewal hereof and to modify insurance coverage and
their limits when deemed necessary and prudent by CITY's Risk Manager based upon changes in
statutory law, court decisions, or circumstances surrounding Contract, but in no instance will CITY
allow modification where upon the CITY may incur increased risk.
9.3 BROKER's financial integrity is of interest to CITY, therefore, subject to BROKER's right to
maintain reasonable deductibles in such amounts as are approved by CITY, BROKER shall obtain
and maintain in full force and effect for the duration of this Contract, and any extension hereof, at
BROKER's sole expense, insurance coverage written on an occurrence basis, by companies
authorized and admitted to do business in the State of Texas and rated A- or better by A.M. Best
Company and/or otherwise acceptable to CITY, in the following types and amounts:
TYPE OF COVERAGE AMOUNT AND LIMITS OF COVERAGE
9.3.1 Workers' Compensation Statutory
Employers' Liability $500,000/$500,000/$500,000
9.3.2 Commercial General (public) Liability Insurance Combined Single Limit for Bodily Injury and
to include the following coverages: Property Damage of$1,000,000 per
a. Premises/Operations Occurrence or its equivalent with a
b. Independent Contractors $2,000,000 Aggregate.
c. Products/completed operations
d. Personal Injury
e. Contractual Liability
9.3.3 Business Automobile Liability Combined Single Limit for Bodily Injury and
a. Owned/Leased vehicles Property Damage of$1,000,000 per
Occurrence $1,000,000 per occurrence with
b. Non-Owned vehicles a $2,000,000 Aggregate
c. Hired Vehicles
9.3.4 Commercial Umbrella $1,000,000 per occurrence with a$1,000,000
Aggregate
9.3.5 Insurance Agents and BROKER's Errors and $5,000,000 per Claim; $5,000,000 Annual
Omissions Insurance Aggregate (Claims made form)
9.4 The CITY shall be entitled, upon request and without expense, to receive copies of the policies and
all endorsements thereto as they apply to the limits required by the CITY, and may make a
reasonable request for deletion, revision, or modification of particular policy terms, conditions,
limitations or exclusions (except where policy provisions are established by law or regulation
binding upon either of the parties hereto or the underwriter of any such policies). Upon such
request by the CITY, the BROKER shall exercise reasonable efforts to accomplish such changes
in policy coverage and shall pay the cost thereof.
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Contract For Insurance Broker and Consulting Services
9.5 BROKER agrees that with respect to the above-required insurance, all insurance Contracts and
Certificate(s) of Insurance will contain the following required provisions:
9.5.1 Name the CITY and its officers, employees, volunteers, and elected representatives as additional
insured with respect to operations and activities of, or on behalf of, the named insured performed
under Contract with the CITY, with the exception of the Workers' Compensation and Professional
Liability policies
9.5.2 The BROKER's insurance shall be deemed primary with respect to any insurance or self insurance
carried by the CITY of Fort Worth for liability arising out of operations under the Contract with the
CITY of Fort Worth;
9.5.3 Provide for an endorsement that the "other insurance" clause shall not apply to the CITY of Fort
Worth where CITY is an additional insured shown on the policy; and
9.5.4 Workers' Compensation and Employers' Liability policy will provide a waiver of subrogation in favor
of the CITY.
9.6 BROKER shall notify the CITY in the event of any notice of cancellation, non-renewal or material
change in coverage and shall give such notices not less than thirty (30)days prior to the change, or
ten (10) days notice for cancellation due to nonpayment of premiums, which notice must be
accompanied by a replacement Certificate of Insurance. All notices shall be given to the CITY at
the following address:
CITY of Fort Worth
Attn: Human Resources Manager
Occupational Health & Safety/Workers' Compensation Division
1000 Throckmorton Street
Fort Worth, Texas 76101
9.7 If BROKER fails to maintain the aforementioned insurance, or fails to secure and maintain the
aforementioned endorsements, the CITY may obtain such insurance, and deduct and retain the
amount of the premiums for such insurance from any sums due under the agreement; however,
procuring of said insurance by the CITY is an alternative to other remedies the CITY may have,
and is not the exclusive remedy for failure of BROKER to maintain said insurance or secure such
endorsement. In addition to any other remedies the CITY may have upon BROKER's failure to
provide and maintain any insurance or policy endorsements to the extent and within the time herein
required, the CITY shall have the right to order BROKER to stop work hereunder, and/or withhold
any payment(s) which become due, to BROKER hereunder until BROKER demonstrates
compliance with the requirements hereof.
9.8 Nothing herein contained shall be construed as limiting in any way the extent to which BROKER
may be held responsible for payments of damages to persons or property resulting from
BROKER's or its subcontractors' performance of the work covered under this agreement.
10 INDEMNITY
10.1 BROKER covenants and agrees to FULLY INDEMNIFY and HOLD HARMLESS, the CITY and the
elected officials, employees, officers, directors, volunteers and representatives of the CITY,
individually or collectively, from and against any and all costs, claims, liens, damages, losses,
expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability and
suits of any kind and nature, including but not limited to, personal or bodily injury or death and
property damage, made upon the CITY, directly or indirectly arising out of, resulting from or related
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Contract For Insurance Broker and Consulting Services
to BROKER's activities under this CONTRACT, including any acts or omissions of BROKER, any
agent, officer, director, representative, employee, consultant, or subcontractor of CONTRACTOR,
and their respective officers, agents, employees, directors and representatives while in the
exercise or performance of the rights or duties under this CONTRACT, all without, however,
waiving any governmental immunity available to the CITY under Texas Law and without waiving
any defenses of the parties under Texas Law. IT IS FURTHER COVENANTED AND AGREED
THAT SUCH INDEMNITY SHALL APPLY EVEN WHERE SUCH COSTS, CLAIMS, LIENS,
DAMAGES, LOSSES, EXPENSES, FEES, FINES, PENALTIES, ACTIONS, DEMANDS, CAUSES
OF ACTION, LIABILITY AND/OR SUITS ARISE IN ANY PART FROM THE NEGLIGENCE OF
CITY, THE ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS AND
REPRESENTATIVES OF CITY, UNDER THIS CONTRACT. The provisions of the INDEMNITY are
solely for the benefit of the parties hereto and not intended to create or grant any rights,
Contractual or otherwise, to any other person or entity. BROKER shall promptly advise the CITY in
writing of any claim or demand against the CITY or BROKER known to BROKER related to or
arising out of BROKER's activities under this CONTRACT and shall see to the investigation and
defense of such claim or demand at BROKER's cost. The CITY shall have the right, at its option
and at its own expense, to participate in such defense without relieving BROKER of any of its
obligations under this paragraph.
10.2 It is the EXPRESS INTENT of the parties to this Contract that the INDEMNITY provided for in this
section is an INDEMNITY extended by BROKER to INDEMNIFY, PROTECT and HOLD
HARMLESS the CITY from the consequences of the CITY's OWN NEGLIGENCE, provided
however, that the INDEMNITY provided for in this section SHALL APPLY only when the
NEGLIGENT ACT of the CITY is a CONTRIBUTORY CAUSE of the resultant injury, death, or
damage, and shall have no application when the negligent act of the CITY is the sole cause of the
resultant injury, death, or damage. BROKER further AGREES TO DEFEND, AT ITS OWN
EXPENSE and ON BEHALF OF THE CITY AND IN THE NAME OF THE CITY, any claim or
litigation brought against the CITY and its elected officials, employees, officers, directors,
volunteers and representatives, in connection with any such injury, death, or damage for which this
INDEMNITY shall apply, as set forth above.
11 INDEPENDENT CONTRACTOR
11.1 It is expressly understood and agreed by the parties hereto that BROKER provides services under
this Contract as an independent Contractor, responsible for its respective acts or omissions, and
that CITY shall in no way be responsible therefore. Neither party hereto has authority to bind the
other or to hold out to third parties that it has authority to bind the other.
12 COMPLIANCE
12.1 BROKER shall provide and perform all services under this Contract in compliance with all
applicable federal, state and local laws, rules and regulations.
13 TERMINATION
13.1 For purposes of this Contract, "termination" of this Contract shall mean termination by expiration of
the Contract term or earlier termination pursuant to any of the provisions thereof.
13.2 Termination Without Cause. Either party may terminate this Contract by providing written notice to
the other party, specifying the effective date of termination, which shall not be less than sixty (60)
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Contract For Insurance Broker and Consulting Services
days from the date such notice is received. Such notice shall be given in accordance with Section
13.
13.3 Termination For Cause. In addition to any other provision of this Contract, CITY may terminate this
Contract immediately or upon thirty (30) days written notice for any of the following:
13.3.1 Negligence, intentional misconduct, or failure by BROKER to perform or observe any of the terms,
conditions, covenants or guarantees of this Contract or of any amendment between CITY and
BROKER; or
13.3.2 Violation by BROKER of any law, rule, or regulation to which BROKER is bound or shall be bound
under the terms of this Contract.
13.4 Upon a decision to terminate by CITY, written notice of such shall be immediately provided to
BROKER specifying the effective date of termination and the extent to which performance of work
under this Contract will be terminated.
13.5 Upon request of notice to terminate, all finished or unfinished documents, data, studies, surveys,
charts, plans, schedules, or other appended documentation, prepared by or on behalf of BROKER
under this Contract shall become the property of CITY and shall, if requested by CITY, be delivered
by BROKER to CITY in a timely and expeditious manner, at BROKER's sole cost and expense.
BROKER shall provide written certification that all documents have been retuned to the CITY.
13.6 In the event of termination, BROKER shall fully cooperate with the CITY and continue to perform
all duties and obligations under this Contract up to the effective date of termination.
13.7 Within thirty (30) days of the effective date of termination (unless an extension is authorized in
writing by CITY), BROKER shall submit to CITY its claim, in detail, for the monies owed by CITY
for services performed under this Contract up to the date of termination, provided however that
such payment does not exceed the maximum amount set out in Section 5 hereof.
14 CONFLICT OF INTEREST
14.1 BROKER warrants and certifies, and this Contract is made in reliance thereon, that it, its individual
officers, employees and agents are neither officers nor employees of CITY or any CITY agencies,
such as CITY-owned utilities.
15 NOTICE
15.1 Any notice required, permitted or appropriate under this Contract shall be deemed sufficient if in
writing and sent certified mail, return receipt requested, postage prepaid, to CITY or BROKER at
the respective address set forth below, or to any other address of which written notice of changes
is given:
If to CITY If to BROKER
CITY of Fort Worth McGriff, Seibels and Williams of Texas, Inc.
Occupational Health and Safety/ 5949 Sherry Lane, Suite 1300
Workers' Compensation Division Dallas, TX 75225
1000 Throckmorton Street
Fort Worth, TX 76102
16 CAPTIONS
16.1 The captions contained in this Contract are for convenience and reference only and shall in no way
limit or enlarge the terms and conditions of this Contract.
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Contract For Insurance Broker and Consulting Services
17 SUCCESSORS AND ASSIGNS
17.1 This Contract shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, successors and their assigns, however, BROKER may
not assign or otherwise transfer any of its interest in this Contract without prior written consent of
CITY in accordance with Section 18.
18 VENUE AND GOVERNING LAW
18.1 Venue for any legal action, claim or dispute arising directly or indirectly as a result of this Contract
shall be in Tarrant County, Texas. This Contract is made and is to be performed in Tarrant County,
Texas and is governed by the laws of the State of Texas.
19 AUTHORITY
19.1 The signer of this Contract for BROKER represents and warrants that he has full legal authority to
execute this Contract on behalf of BROKER and to bind BROKER to the terms and conditions
contained herein, and this Contract is made in reliance thereon.
20 SEVERABILITY
20.1 If any clause or provision of this Contract is held invalid, illegal or unenforceable under present or
future laws during the term of this Contract, including any extension and renewal hereof, it is the
intention of the parties hereto that the remainder of the Contract shall not be affected hereby, and
that in lieu of each invalid clause or provision of this Contract, a clause or provision as similar in
terms to such illegal, invalid or unenforceable clause or provision as may be possible shall be
drafted to comply with all applicable laws and shall replace the clause or provision held invalid,
illegal or unenforceable.
21 RIGHT TO AUDIT
BROKER agrees that CITY shall, during the Initial term and any Renewal Term, and until the
expiration of three (3) years after final payment under this Contract, and at no additional cost to
CITY, have access to and the right to examine any directly pertinent books, documents, papers
and records of the BROKER involving transactions relating to this Contract. BROKER agrees that
CITY shall have access during normal working hours to all necessary BROKER facilities and shall
be provided adequate and appropriate workspace in order to conduct audits in compliance with the
provisions of this section. CITY shall give BROKER reasonable advance notice of intended audits.
If BROKER subcontracts any of its obligations under this Contract, subcontractor shall be bound
by the same rights, duties and obligations of the BROKER under this provision.
22 ATTORNEY'S FEES
In the event a claim is brought pursuant to this Contract, CITY shall be entitled to recover
reasonable attorney's fees from BROKER.
23 WAIVER OF RIGHT
The CITY and BROKER may waive an obligation or restriction upon the other under this Contract
only in writing. No failure, refusal, neglect, delay, forbearance or omission of the CITY or BROKER
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Contract For Insurance Broker and Consulting Services
to exercise any right or remedy under this Contract or to insist upon full compliance by the other
with its obligation hereunder shall constitute a waiver of any provisions(s) of the Contract.
24 FORCE MAJEURE
It is expressly understood and agreed by the Parties that if the performance of any obligations
hereunder is delayed by reason of war; civil commotion; acts of God; inclement weather;
governmental restrictions, regulations, or interferences; fires; strikes; lockouts, national disasters;
riots; material or national labor restrictions; national transportation problems; or any other
circumstances which are reasonably beyond the control of the party obligated or permitted under
the terms of this Contract to do or perform the same, regardless of whether any such circumstance
is similar to any of those enumerated or not, the party so obligated or permitted shall be excused
from doing or performing the same during such period of delay, so that the time period applicable to
such obligation shall be extended for a period of time equal to the period such party was delayed.
However, such party shall resume performance under this Contract as soon as reasonably possibly
after the delay is remedied.
25 ENTIRE AGREEMENT
25.1 This Contract, together with its authorizing action and attached exhibits, if any, embodies the final
and entire agreement of the parties hereto, superseding all oral or written previous and
contemporary arguments between the parties and relating to matters in this Contract. No other
agreements, oral or otherwise regarding the matters of this Contract shall be deemed to exist or to
bind the parties unless same is executed in accordance with Section 5.
[Signature Pages Follow]
City of Fort Worth—McGriff, Seibels&Williams of Texas Page 10 of 12
Contract For Insurance Broker and Consulting Services
EXECUTED this the&—day of , 2007.
CITY OF FORT WORTH, TEXAS MCGRIFF, SIEBELS &WILLIAMS OF TEXAS, INC.
Karen L. Montgomery 0 John y . Fontenot
Assistant City M nager/CFO Senior Vice President
Date: /a /q/a? Date:
APPROVED AS TO FORM ATTEST:
AND LEGALITY:
Maleshia Farme Marty Hendrix
Assistant City ttor ey City Secrettaaary
Date: I L 7- n �' Date:
RECOMMENDED FOR APPROVAL: Contract Authorization_
M&C: C-00 S a5
Date Approved: I I a
Kare Marshall
Human Resour es Direc r
Date: 12 1 LJ b
City of Fort Worth—McGriff, Seibels&Williams of Texas , Page 11 of 12
Contract For Insurance Broker and Consultin g Services UU a d_"I�U�Lflflp�rb�'�'
ATTACHMENT A - FEE SCHEDULE
WORKERS' COMPENSATION BROKER AND CONSULTING SERVICES
Annual Fee—
Contract not to exceed
BROKER SERVICE PROVIDED Fee Structure Year amount
Insurance Placement Services (Ref. 1.1) Flat Fee Year 1 $24,000
Year 2 $24,000
Year 3 $24,000
Year 4 $24,000
Year 5 $24,000
Actuarial Services (Ref. 1.2) Flat Fee Year 1 $10,000
Year 2 $10,000
Year 3 $10,000
Year 4 $10,000
Year 5 $10,000
Claims Auditing Services (Ref. 1.3) Flat Fee Year 1 $6,000
Year 2 $6,000
Year 3 $6,000
Year 4 $6,000
Year 5 $6,000
Occupational Safety/Accident Included in Fee for Year 1 Included
Prevention and Workers' Comp. Loss Insurance Year 2 Included
Control Services (500 Hours) —(Ref, 1.4) Placement
Year 3 Included
Services
Year 4 Included
Year 5 Included
Other Broker Services (Ref. 1.5) Included in Fee for Year 1 Included
Insurance Year 2 Included
Placement
Services Year 3 Included
Year 4 Included
Year 5 Included
Value Added Services—Specify: NO CHARGE
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Contract For Insurance Broker and Consulting Services
Page T of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/27/2007
DATE: Tuesday, November 27, 2007
LOG NAME: 14BROKER REFERENCE NO.: **C-22525
SUBJECT:
Authorize Execution of a Contract for Workers' Compensation Excess Insurance Broker and
Consulting Services with McGriff, Seibels & Williams of Texas, Inc.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a three-year contract with
McGriff, Seibels & Williams of Texas, Inc. for workers' compensation excess insurance broker and
consulting services.
DISCUSSION:
The City of Fort Worth contracted with McGriff, Seibels & Williams of Texas, Inc., (McGriff), to assist the City
in claims and billing reviews, audits and serving as the City's Broker of Record for excess workers'
compensation insurance coverage as needed. The contract expired September 30, 2007, and proposals
were received from three insurance brokers in response to the City's Request for Proposals (RFP No. 07-
0250). See Attached Bid Tabulation.
Staff recommends the contract be awarded to McGriff, Seibels & Williams of Texas, Inc., to provide
workers' compensation excess insurance placement services, workers' compensation actuarial and claims
auditing services, and accident prevention and loss control services for an annual cost of$40,000.
McGriff has placed the City's workers' compensation excess insurance coverage and has provided the City
with workers' compensation consulting services for the past five years. McGriff will service the City's
account from their local office in Dallas.
The City's excess workers' compensation insurance coverage expires on December 31, 2007. McGriff will
obtain competitive bids in the insurance marketplace and will make recommendations to the City to
continue this coverage. Staff anticipates that the City Council can approve the insurance policy for excess
worker's compensation coverage at the City Council meeting on December 18, 2007.
McGriff is in compliance with the City's Minority and Women Business Enterprise (M/WBE) ordinance by
committing to 10 percent M/WBE participation on this project.
AGREEMENT TERMS - The broker contract will begin December 1, 2007, and expire November 30, 2010.
RENEWAL OPTIONS - This agreement may be renewed for two one-year terms at the City's option. This
action does not require specific City Council approval, provided that the City Council has appropriated
sufficient funds to satisfy the City's obligations during the renewal term.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 12/4/2007
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, in
the Workers' Compensation Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
FE73 534610 0147310 $40,000.00
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Ron Josselet (7766)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 12/4/2007